Day Traders Diary

9/8/23

The major averages rebounded into the green by the close but finished the week lower on renewed concerns about the Federal Reserve, the economy and rising oil prices. The Dow Jones Industrial Average rose 75 points or 0.22%. The S&P 500 rose 6 points while the Nasdaq rose 12 points. The major averages all capped off a losing week. The S&P and Nasdaq dropped 1.3% and 1.9%, respectively, for their first negative week in three. The Dow finished about 0.8% lower.

Renewed fears over more rate hikes from the Federal Reserve were further justified as initial jobless claims came in at 216,000, lower than the 230,000 anticipated by economists polled by Dow Jones.

On the earnings front, shares of e-signature stock DocuSign fell 3% even though the company beat second-quarter estimates on the top and bottom lines and posted rosy third-quarter guidance. RH fell 15% as the home furnishings company reported soft guidance for third-quarter revenue.

Energy stocks rose Friday as oil prices continued their recent rise, 1.4% on the week. Marathon Petroleum and Phillips 66 both rose 3% while Valero Energy jumped 4%.

Some technology stocks found their footing on Friday.  Apple roes 0.4% after falling 7% the previous two sessions. Microsoft and Salesforce rose nearly 1%. Block shed 5% on Friday after experiencing systems outages the last two days.

Economic data this week included lower-than-expected initial jobless claims, reigniting rate hike fears and concerns that the Federal Reserve may have more work ahead. As of Friday, traders are pricing in greater than 4 in 10 chances of an increase in November after an anticipated pause in September, according to CME Group's Fed Watch tool.